Go East Your Man-Chinese employment law?


I own a successful consultancy company and have decided to set up an office in China. I am sending a senior member of staff out to Beijing on a six-month secondment. Is he governed by UK employment law, or that of China? Are there any conditions I need to include in his contract?

Most of what is required to set up an office in China is typically handled more cheaply and efficiently by outside advisers, not within your own company. You will only need to send a staff member to China on a few occasions, the number of which depends on whether you are registering a representative office (fewer) or establishing a subsidiary (more).
You should send someone out for a longer period once the office is established. Your staff member will continue to be governed by UK employment law, and there are no special conditions you need to add to his contract.
I recommend that you have a side letter setting out what is expected of him in terms of setting up the office. The expatriate should obtain a business visa for his trips to China. It is important that he spends less than 90 cumulative days in China on any entry, as a work permit is required if this threshold is exceeded. However, it should not be necessary for him to even come close to this threshold simply in order to get your office set up.

By Rodney Hylton-Potts/employment lawyer.